New Delhi [India], November 15 : The Enforcement Directorate (ED) has arrested Swaraj Singh Yadav, the key person and Managing Director of Ocean Seven Buildtech Pvt Ltd (OSBPL), for his role in the laundering and diversion of funds collected from homebuyers across multiple projects, the agency said on Saturday.
The financial probe agency arrested Swaraj Singh Yadav on November 13 following search operations at nine locations in Delhi-NCR and other places under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an ongoing investigation involving OSBPL and its associated persons.
During the search operations, the ED recovered Rs 86 lakh in cash, suspected to be linked to the Proceeds of Crime (POC), along with various incriminating documents and digital evidence relevant to the investigation.
Investigation indicates that Swaraj Singh Yadav has fraudulently diverted and laundered funds collected from homebuyers under PMAY projects through the cancellation and resale of units at inflated prices, the collection of substantial cash premiums, and the diversion of Escrow proceeds into shell entities.
During searches conducted under Section 17 of the PMLA, the ED stated that cash amounting to Rs 86 lakh, which was in the custody of his relative and derived from the sale of land in Rajasthan by Swaraj Singh, was recovered. This recovery established his active possession and concealment of the Proceeds of Crime.
An ED investigation has further revealed a pattern of accelerated liquidation of personal and company-held assets by Swaraj Singh across Gurgaon, Maharashtra, and Rajasthan in recent years, to convert illicit gains into a form that can be easily disposed of. "His wife and children have relocated to the USA, and such accelerated sales indicate a clear attempt to dissipate assets and evade legal action."
ED further said "a modus operandi used to generate POC by cancelling allotments of flats under Pradhan Mantri Awas Yojana (PMAY) under false pretexts and reselling the same units at higher prices without refunding earlier payments, thereby collecting dual proceeds."
He also controlled the cash-based premium collection, in addition to the money received through banking channels, in such resales, stated the ED.
"A similar cash-driven mechanism was followed in the sale of parking areas, where only a nominal amount was routed through the company's bank, and the remaining premium was taken in cash as per his instructions. These actions are part of a larger investigation into the misuse of escrow funds and other violations mentioned in multiple FIRs for predicate offences," said the agency.
The arrested accused was produced before the court, and the proceedings before the judge began at 2.25 am on November 14 and pass passover was granted to enable the accused to have adequate legal assistance.
The court granted ED custody of the accused for 14 days, up to November 28.